One of the biggest changes for businesses and their payroll systems is coming soon (1 July 2019) – Single Touch Payroll (STP).
Whilst employers with 20 or more employees have been required to report from 1 July 2018, from 1 July 2019 all employers will be required to report wages paid to their employee. As such, a software such as Xero or MYOB must be in place in order to handle this significant change. Both softwares are equipped to deal with the change and will be able to report to the ATO each time employees are paid.
For those with 19 or less employees, there will be a less expensive software option to allow them to integrate into the STP system (earmarked at less than $10 per month).
Micro employers (1-4 employees) will initially be able to report their wages quarterly through their registered tax agent rather than each time they pay employees, however these micro employers will need to integrate into the STP system soon.
If you run a business that employs workers and you are unsure how Single Touch Payroll affects you, please get in touch with our office. There is also a webcast being run by the ATO regarding STP on 5 March 2019 that will outline how it works and the options available for small business and micro employers.
<Author: Tim Money>
<Reference: The Knowledge Shop>